Different types of vehicles used for commercial purposes that are covered by fleet insurance

Types of Vehicles Covered by Fleet Insurance

Aug 24 2022

If you need coverage for around three or more vehicles, then fleet insurance is highly recommended. Having one fleet insurance policy has numerous benefits over having multiple commercial auto insurance policies. Some of the biggest benefits include the following: 

If you’re still deciding if fleet insurance is for you, read on to learn more about it and the types of vehicles that it can cover. This article will discuss the following: 

Let’s get started! 

Commercial vans that are covered by fleet insurance driving out of a tunnel

What Does Fleet Insurance Cover?

When you hear “fleet insurance,” do you think of service cars, cabs, rental cars, or trucks? If you chose some or all of the vehicles mentioned above, you are correct. Fleet insurance is a multi-vehicle insurance type that can protect your entire fleet without hassle.

Depending on the type of fleet insurance you get for your business, it can provide coverage for the following: 

  • Third-party liability coverage if your vehicle is at-fault;
  • Uninsured auto coverage if an uninsured driver is at-fault;
  • Theft, vandalism, and fire damage or loss; and
  • Accident benefits.

What is Classified as a Fleet?

As long as a company owns more than one vehicle, that is considered a fleet. Even if the company owns different types of vehicles, this is still considered a fleet. 

However, it should be noted that fleet insurance is typically only offered to registered businesses, and is usually not applicable to vehicles for personal use. Furthermore, larger fleets tend to have larger premiums—albeit at a discounted rate.

Does the Type of Vehicle Affect the Cost of Coverage?

Before we discuss the types of vehicles that fleet insurance covers, you may wonder if the type of vehicle affects the premium paid for fleet insurance. The short answer to this is yes. Like any type of auto insurance, fleet insurance considers the model of the vehicle, the age of the vehicle, what the vehicle is used for, and so on. 

As we explore the types of vehicles covered by fleet insurance, we will look into these factors mentioned above and how they impact insurance for fleet vehicles. 

Types of Vehicles That Can be Covered by Fleet Insurance

1. The Types of Vehicles (Model/Make)

Essentially, a commercial vehicle is used for business or commercial purposes. Commercial fleet insurance can cover various vehicles of different models and makes. 

Here are some examples of commercial autos that can be included in your fleet insurance plan:

  • Cars;
  • Cabs;
  • Vans;
  • SUVs;
  • Limousines;
  • Buses;
  • Minibuses;
  • Mini trucks;
  • Pickup trucks;
  • Delivery trucks;
  • Cement trucks;
  • Tow trucks; 
  • Enclosed trailers;
  • Flatbed trailers;
  • Gooseneck trailers; 
  • Step-deck trailers;
  • Etc. 

In the above section, we mentioned a few types of vehicles classified as large goods vehicles (LGVs) or heavy goods vehicles (HGVs). LGVs and HGVs are categories for trucks or trailers that have a vehicle weight of over 3,500kg. Because these vehicles can be included in fleet insurance, some may think that mobile equipment is also included. 

However, mobile equipment is not included in fleet insurance. Being different from commercial fleet vehicles, mobile equipment typically needs a different type of insurance altogether. One simple way to tell the difference is to ask: where is the machine primarily used?

Commercial vehicles are typically used to transport passengers, goods, or materials; their objective is to go through public roads. Meanwhile, mobile equipment is typically for specialized, off-road use—even if they can sometimes go through public roads now and then. 

Here are some examples of mobile equipment that are typically not included in fleet insurance:

  • Steam rollers, scrapers, graders (used for road maintenance or resurfacing);
  • Stiff boom cranes, folding boom cranes, hydraulic all-terrain cranes (wherein the cranes are permanently attached); 
  • Crawler bulldozers, wheel bulldozers, mini bulldozers; and
  • Other similar vehicles.

2. The Purpose of the Vehicle

Commercial vehicles that are used for the following purposes can be covered by fleet insurance:  

  • For rent or hire;
  • For making product deliveries;
  • For transporting employees;
  • For transporting third-party individuals; and
  • For transporting materials, tools, and equipment.

3. The Age of The Vehicle

The age of the commercial vehicle generally does not determine whether it’s insurable or not. However, the age of the vehicle can affect your fleet insurance premium. Instead of age, most insurance companies look into how well-maintained the vehicles are and what precautions you take to ensure they stay that way. 

4. A Fleet With Different Commercial Vehicles

You don’t need to have a homogenous fleet to have commercial fleet insurance. Even if your fleet has different types of commercially used vehicles, you can still have them insured as a single fleet. 

For instance, you may have a few delivery trucks and cars that employees can use to meet with clients. All of these vehicles can belong to one fleet that is all under one easy-to-manage policy.

A truck covered by fleet insurance being driven on an expressway 

Can a Commercial Car or Vehicle Be Uninsurable? 

Let’s address the burning question that most of you may have. Can a commercial vehicle be, in fact, uninsurable? 

As we’ve discussed, fleet insurance can cover a vast array of vehicles of different ages, types, uses, and so on. But you may have heard of some business owners getting denied commercial fleet insurance after applying. 

As long as your vehicles classify as functioning commercial vehicles (e.g. cabs, buses, trailers, trucks), are legally registered, and are well-maintained, then you are eligible to apply and likely to get insured. 

However, the following factors may result in your commercial fleet insurance application getting denied. Note how these are mainly contextual factors, and not about the commercial vehicles themselves. 

  • Having a record of insurance fraud in the past;
  • The business having been declared bankrupt before;
  • Having a history of excessive claims in the past;
  • The insurance company not offering specialized plans for a high-risk industry that the business falls under; and
  • The insurance company deeming that the drivers/employees of the business have too many violations or at-fault accidents on their records. 

It’s important to keep in mind that not all insurance companies are the same. In fact, for business owners, the wide array of choices for insurance plans and insurance companies can be, at times, overwhelming. 

Some business owners who get denied may opt to try their chances with another insurance provider. But whether a business has been previously denied or is just trying to make the perfect choice from a wide array of options, it can be a long and winding process. 

This is where insurance brokerage companies, like KASE Insurance, step in to make the process more seamless.  

Get Hassle-Free Fleet Insurance That Your Business Can Count On

Whether you have two, three, four, or a hundred commercial vehicles in your fleet —and whether or not they are different types of vehicles—we can personalize fleet insurance exactly for your needs. This is one of our specialties here at KASE Insurance. By personalizing insurance plans, we give businesses exemplary coverage without unnecessary costly riders. 

On top of the personalized insurance plans we offer, we also give award-winning end-to-end service that makes insurance completely hassle-free and easy. Our expert team will help you from negotiating premiums to following up on claims. You’ll always have us to advocate for your business.

If you have more questions about the types of vehicles fleet insurance can cover, contact us today!


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